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Financial Market: Kakul Masood Zaidi (Associate Manager Sales) Delhi Go7

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FINANCIAL MARKET

KAKUL MASOOD ZAIDI


( ASSOCIATE MANAGER SALES )
DELHI GO7
AGENDA

What is investment ?

Why invest ?

Where invest ?

An Introduction to Financial Market

Types of Financial Market

Conclusion
What is Investment ?

Money we earn is partly spent and rest saved for meeting future
expenses. Instead of keeping the savings idle we like to use savings in
order to get return on it in the future. This is called Investment.
Why Invest ?

Earn Return on idle resources

Generate sum of money for specified goal in life

Make provision for uncertain future

To meet the cost of inflation


An Introduction to Financial Market

In economics, a financial market is a mechanism that


allows people to easily buy & sell (trade) financial
securities ( such as stocks & bonds ), commodities
( such as precious metals or agricultural goods ).
Types of Financial Market

Capital Commodity Money


market Market Market

Financial Market

Derivatives Insurance Foreign


Market Market Exchange
Market
Options for Retail Investor

Equity
Debt
Mutual Funds
Fixed Deposits with Banks
Post office schemes
Gold
Real Estate
Insurance
Equity Shares

• It commonly referred to as ordinary share


represents the form of fractional ownership in a
business venture.

• Equity shareholders have the right to get


dividends as declared.
DEBT

This instrument represents contract whereby one


party lend money to another on pre-determined
terms with regards to rate and periodicity of
interest, repayment of principle amount by the
borrower to the lender.
Classification of DEBT

BONDS: Issued by Govt.(Central and State),Public


Sector Organisation

DEBENTURES: Issued by Private Corporate Sector.


Mutual Fund

A Mutual fund is a collective investment vehicle that


pools together investor money. This collective pool of
money is invested in accordance to stated objective.

Mutual Funds are :


 A large pool of resources
 Managed by professionals
 Diversified investment for lower risk & better return
Fixed Deposits with Banks

It allows an investor to deposit a lump sum of money for


a fixed period ranging from a few weeks to a few year and
earn a pre-determined rate of interest.
Guaranteed Returns depends upon term.
Safe and Secured Investments
Post Office Schemes

Offered by Govt. of India


Safe, secure and risk-free Investment
No Tax deduction at source (TDS)
Transferable to any post office in India
Attractive Rate of Interest
Post office monthly income scheme
Kisan Vikas Patra
National Savings certificate
Public Provident Fund
GOLD

Physical Gold in the form of bars and coins

Gold accounts in banks where units in the gold a/c in


the banks are backed up by physical gold held in the
bank and bank gives assurance that the investor can
convert the gold back to cash anytime.
Real Estate Investment

Financial instrument that invests primarily in the


real estate such as offices, apartments, shopping
centres, hotels etc.

Tend to pay high returns( often as high as 10%)

Attractive investment opportunity when the stock


market is falling.
Insurance

A promise of compensation for specific potential


future losses in exchange for a periodic payment.
Now it is considered as a investment tool also:

ULIPs

Traditional Plans
Conclusion

Investors looks at superior returns and measured


risk therefore he has to select a dynamically
balanced asset allocation mix consisting of the
different investment options available in the
Financial Market.
THANK YOU

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